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Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Acacia Communications, Inc.Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/acacia/) today announced that a class action has been commenced on behalf of purchasers of Acacia Communications, Inc. ("Acacia") (NASDAQ:ACIA) publicly traded securities during the period between August 11, 2016 and July 13, 2017 (the "Class Period"), including purchasers of Acacia common stock in the public stock offering completed on or about October 7, 2016 at $100 per share. This action was filed in the District of Massachusetts and is captioned Kebler v. Acacia Communications, Inc., et al., No. 17-cv-11695. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from August 14, 2017. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [email protected]. If you are a member of this class, you can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/acacia/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. The complaint charges Acacia and certain of its officers with violations of the Securities Exchange Act of 1934. Acacia designs, develops, manufactures and markets high-speed coherent optical interconnect products for cloud infrastructure operators and content and communication service providers. In ctober 2016, Acacia and certain selling stockholders completed a secondary public stock offering of 4.5 million shares of common stock at $100 per share for gross proceeds of $450 million (the "SPO"). The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Acacia's business and prospects. Specifically, the complaint alleges that defendants failed to disclose that: (a) Acacia's top two customers had experienced operational and sales problems in the period ended September 30, 2016, well before Acacia's SPO, that were limiting their demand for Acacia products at the time of the SPO; (b) a significant portion of the Company's pre-SPO sales growth was attributable to infrastructure buildout in China that was virtually complete, which was already reducing demand for product in that important market; (c) one of the Company's largest customers was having difficulty rolling out its own cloud-based technology using Acacia's products, reducing that customer's demand for Acacia's products; and (d) due to a circuit board cleaning process Acacia had since abandoned, there were "quality issue[s]" "affect[ing] a portion of the approximate 1,300 AC400 units and 5,000 CFP units manufactured by one of its three contract manufacturers." As a result of defendants' false statements and/or omissions, Acacia shares traded at artificially inflated prices during the Class Period, allowing defendants to complete the SPO and Company insiders to sell 2.88 million of their Acacia shares for more than $188.2 million in insider selling proceeds at prices as high as $96.50 per share. On October 27, 2016, the price of Acacia shares began to fall as the Company's two largest customers announced disappointing guidance for fiscal 2016. In April 2017, one of Acacia's competitors lowered its guidance, citing a near-term demand slowdown in China, causing the price of Acacia stock to fall 11%. On May 31, 2017, Acacia disclosed that it had identified a quality issue with certain of its previously shipped units and stated it was working to remediate the problem. Then on July 14, 2017, before the markets opened, Acacia announced its preliminary second quarter 2017 financial results and slashed its third quarter 2017 guidance, stating that its results "'were adversely affected by the quality issue identified at one of [its] three contract manufacturers that [was] announced on May 31,'" that Acacia had "'identified a circuit board cleaning process [that was] the likely root cause of the quality issue,'" and that, "'[a]lthough [Acacia] began to ramp manufacturing capacity with [its] contract manufacturers during the quarter, [it] experienced supply constraints as capacity was used to both build replacement units and to meet new demand from customers.'" As a result of this news, the price of Acacia common stock declined from $41.62 per share on July 13, 2017 to $39 per share on July 14, 2017. Plaintiff seeks to recover damages on behalf of all purchasers of Acacia publicly traded securities during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud. Robbins Geller is widely recognized as a leading law firm advising and representing U.S. and international investors in securities litigation and portfolio monitoring. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For the third consecutive year, the Firm ranked first in both the total amount recovered for investors and the number of shareholder class action recoveries in ISS's SCAS Top 50 Report. Robbins Geller attorneys have shaped the law in the areas of securities litigation and shareholder rights and have recovered tens of billions of dollars on behalf of the Firm's clients. Robbins Geller not only secures recoveries for defrauded investors, it also implements significant corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com for more information.
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